channel. we'll see i right here next week. >> kelly: hello, i'm kelly wright. >> heather: i'm heather childers. chilling claims of cyber spy, hacking into u.s. businesses as well as virtually every power institution in washington. we find out how it could impact everything from national security to every day lives. >> and blade run are out on bail as he awaits trial for the shooting death of his model girlfriend. one person that holds his fate in their hands.

plus.... >> heather: so have you ever thought that snowplow drivers intentionally plow people in? this guy did. then he posted the proof of his nasty handy work online. now he is speaking out and so are his angry and cold victims. >> kelly: first a major showdown in washington over looming spending cuts set to kick in next week. lawmakers are digging in for a long fight as president obama and congressional democrats accuse republicans of protect go the wealthy. while they refuse to bend on tax hikes and blast the president. >> it unfortunately appears that republicans in congress instead of compromising, instead of

asking anything of the wealthiest of americans, they would rather let these cuts fall squarely on the middle-class. >> house republicans have passed to bills to we place the at the questions terrify. the question is, why won't he work with us? the answer is because he wants higher taxes. >> kelly: molly henneberg has the latest details on this. the blame seems to go to both sides. what else is being done? >> reporter: no sign that a compromise is in the works to avoid the $85 billion in federal spending cuts set to kick in on friday, march 1st. barring a budget deal between the white house and congress. the president insists any last minute deal has to include more tax hikes as well as spending cuts and the white house is chiding republicans for not going along with that. >> i'm not seeing much interest in even engaging in discussion about how we can move forward

with a balloted package. the line they keep drawing in the sand is i don't care what they say. i don't care who is hurt by it. republican position is cuts only. >> reporter: that raises the hackle of republicans con tend that americans have been hit with enough tax increases including the beginning of this year when the g.o.p. allowed certain bush tax cuts to expire. republicans insist they wanted to work with the president how to rein in federal spending. >> the sequester is slow down in the rate of growth of government it's the least we can do. our country is drowning in a sea of debt. borrowing $50,000 a second. we have to slow down spending. for the president to use this i think beneath the office of the presidency. >> reporter: president obama will be taking his message on the road next week with a stop

at virginia ship building operation. virginia was w the massive defense industry would be hit hard by the spending cuts. >> kelly: a lot of people questioning that trip, as well. just how will these spending cuts impact the american people in the coming months? a dire warning from ray lahood and we'll look behind the politics for some bottom line answers just ahead. >> heather: and they are urging federal officials to take action republican and democratic state leaders weighing in the national meeting of the national governor's association, warning congress that the latest stalemate threatens economic progress in their stated. republican governor from oklahoma, he says the gridlock is taking a toll on families and democratic governor from vermont he says the nation, quote,

cannot afford to put at risk jobs in the recovery. >> one of the most contentious battles n years could be over on sunday. the senate is expected to vote on the chuck hagel nomination. it's been a rough ride for the former republican senator. his fellow republicans oppose him on his positions on israel, iran and iraq and viewing him as disloyal in the nebraska senate race. >> heather: ominous developments out of iran. tehran has announced locations for 16 more nuclear power plants days before talks with world powers over it's atomic program. the revolutionary guard most

powerful force there is taking off three days of war drills. they involve air and ground units as they look to upgrade their combat readiness. conner powell has the latest from our middle east bureau. >> these war games come as the tension between iran and the rest of the world continues to mount. iranian state television said the goal of these war games is to improve the islamic republic combat readiness. tanks and troops video show attacks. israel accuse iran that they are trying to build a nuclear weapon a claim they subject that they say is for peaceful purposes. israel hinted that it would strike iran to prevent that program from going forward. they have tried to encourage the u.s. to launch a preemptive strike but so far the obama administration has pushed back primarily relying on tough sanctions which have hurt the

iranian economy, but not the nuclear ambition. this comes as tehran has announced it's discovered a new large uranium deposit that would help the nuclear program. if it is true and tough to prove or to believe exactly what tehran says, it would triple the size of iran's known nuclear uranium deposits. diplomats are trying to work on controlling their nuclear program. they are supposed to meet with iranian leaders, diplomats from the united states, france and germany but no one has optimism that anything is going to change between tehran and the rest of the world because neither side is offering anything new. >> heather: thank you coner. >> kelly: three weekends in a row now. northeast is getting slammed with wintery weather.

forecasters predicting a foot of snow in some areas. maria molina is live in the weather center, and punxsutawney phil said we would only have six weeks left but it's coming with a fury. >> he is only right about 30% of the time but we want to talk about the winter storm. you mentioned about a foot of snow possible especially in southern new england. there is a cold front associated with the system and we tend to see a big rise in temperatures. that is exactly what we're going to be talking about over florida. 88 degrees could be the high temperature in miami. we're talking record level heat during the month of february across portions of florida. incredible stuff going on right now and dealing with areas of heavy rain, thunderstorms across northern florida and southern georgia. there is a possibility some of those storms could produce

isolated severe weather but the actually area of low pressure off of coast of virginia. we're starting to see some the winter weather across new england but tonight into tomorrow we'll see the heavier snowfall amounts. locally 8 inches, maybe a foot in sections of the interior. kelly, believe it or not another storm is going to develop monday into tuesday across the central plains, possibly over a foot of snow. >> kelly: it's been quite a winter. maria, thank you. >> evil part of the day, as you can see i put [ bleep ] over it baby [ bleep ]. >> heather: he said my favorite part of the day. that guy is named dog the plow driver and now he is unemployed.

he put it online and fired from his snow plowing job. eric was our boston affiliate reports. >> i'm sorry. what you got down there. >> you would have to enjoy it that much? >> i probably don't have to enjoy it so much, hey, it's the little things in life. >> a care free and cocky in an interview first saw in o fox. today a different side that he called himself dogg. from his sudden unemployment. >> i will never plow for the city again, what he said was disrespectful to the residents. >> jill miller one of his bosses contracting still trying to wrap her head because her company is a plow are contractor for city of lowell. >> we were appalled and stupid

thing to do. >> in hindsight, so did dog to too embarrassed to go back to the camera. he called the video a stupid mistake and apologized those he offended including the city and residents. residents were pretty upset last night. >> it's very aggravating you wanted to throw a shovel at him. >> knowing that he got fired, you wanted to throw your shovel at him? >> i'll let it go this time now. >> with snow piles high and more snow on the way, not everyone was so forgiving. >> do something else, you know what i'm saying. >> i appreciate everything had a dog has done for us. he has been a good driver. i cannot have the reputation 6 our company put at risk. >> if that is how he feels and that is what he is thinking, by all means think it but don't put

it out there for everybody to see that. is not acceptable. >> heather: thank you. >> kelly: i've had a twinge of doubt about these guys. when you go out and shovel snow and you still have a piel out there and after they have gone through the area. now i have to shovel again. >> heather: why posted it on line? another lesson. be careful what you put on line. we say it to people all the time. >> kelly: something much more serious, sequestration sounds like a fancy word but it could be so far and wide affecting even air travelers. what across the budget cuts will mean for you. >> heather: and disturbing claims in cyber espionage by china's military that chinese hackers may be our next national security threat. >> kelly: and this doctor is

serving a massive prison sentence for helping the u.s. track down and kill osama bin laden. now one group is leading the push to set them free and it wants hollywood to help. >> if this is how we treat our friends, who is going to help america next time. we need to stand up for the doctor and stand up to everyone who is an ally on to america. victor! victor!

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>>. >> kelly: welcome back. a dire warning from a key member of obama's cabinet on the loomgs spending cuts set to kick in next friday. ray lahood making a surprise appearance warning of major disruptions in the nation's commercial air system if the cuts slated to hit the faa take hold. >> safety is our top priority and never allow the air travel we can handle safely which means travelers should expect delays. flights to major cities like new york, chicago and san francisco and others could experience delays up to 90 minutes during peak hours

because we have fewer controllers on staff. >> kelly: chief of affairs of new york and new hampshire and joining us to way on the issue. a lot of people are casting blame that the republicans blaming democrats, democrats blaming the republicans but let's dispense with the blame. what are we facing here with this sequestration, steven? >> what you are facing today particularly next friday is very significant disruptions in the air traffic. to just clarify, i'm not head of the port authority but i'm glad i'm not right now because we're facing some pretty significant disruptions at the airports getting food and key supplies on our shelves. i think people have to treat it essentially they would treat a

big storm in that there are going to be significant disruptions to the good movement system and people movement system. >> kelly: when you prepare for a storm, you batten down the hatches and get all the supplies you need. in this particular case, with sequestration, how do you really protect yourself from the coming storm we are anticipating in terms of how it will impact our very homes, our very lifestyles? >> i think there is some question marks there when you pointed out is right. we are used to big storms. we haven't gone through it before. i think in giving people advice, it will take a while in the air traffic system. smaller airports and regional airports, they do have to treat it pretty quickly as there were a big storm coming, they would have to check with airlines and check with their schedule. >> kelly: and get their earlier, right? >> get there an hour earlier.

check frequently online and with phone calls. good movement is harder to tell. in super storm sandy, we started to see impacts on the shelves, food shelves and gas lines. i don't know if you are going to see that here but people have to think about it and be prepared for it. remember, inspections are going to suffer once you see furloughs. >> kelly: the impact of all of this, 83% of the american people -- i wanted to bring that up. they think what is going on as it adds to sequestration that our government spending is out of control. where do you see the remedy that could possibly avert what we believe could be a manufactured crisis since we really didn't have to go the sequestration? >> unfortunately the remedy is with congress and washington. we haven't seem to be able to gotten the two sides together

and come up with the medicine you need to be able to avert this. it was threats over and over again and we face it again, potentially there will be an agreement but it doesn't look like it is happening, as a result business travelers and people that rely on travel and goods movement needs to think what the impact will be on this pretty quickly. >> kelly: i was struck by rand paul who wanted to say we're borrowing something like $50,000 a second. that is staggering when you think about the impact of that and think about $16 trillion in debt. will this sequestration help us in any way or dig out from some of the debt we're in? >> no. not what goes on for years. this is more of a political issue right now than it is a reality of a budget issue. it's a political issue because

it's getting forced to a political timetable, but there will be impact on real people. to some degree that may force people to start thinking about how their representatives in washington can better represent them and do what they are supposed to be doing which is getting to budget agreements and keeping the transportation and people movement system moving. >> kelly: how about just doing their job. steven sigmond, thanks for your insight. >> heather: nascar's best drivers will hit the track tomorrow for the daytona 500 whipping around the oval at speeds of nearly 200 miles an hour. what exactly does it take to put together a great race and what is it like behind the wheel? i got to find out. >> kelly: all right. >> we're here at daytona international speedway for the

kick off for the sprint cup series. ♪ ♪ >> heather: the sprint unlimited kicks off the season followed by speed week leading up to the daytona 500. while its week of fun for the fans, the drivers have a whole lot of work to do including a waltz down the red carpet. >> it gives us some confidence but daytona is a special place. >> heather: the poll winner danica patrick and ricky is in the spot lighted for their relationship off the track and as rookie of the year contender. >> it's about getting the most out of every weekend and getting better and better. >> it's awesome to be here. we're excited. we feel really good. >> heather: while the red carpet may be fun i wanted to know what

it's like behind the wheel. look who we found, gregg biffle, potential trim crown winner. >> i've been lucky enough to be in that position but be a little short. i am so pumped up. i couldn't wait to get inside. >> he got right in the right way. >> the door doesn't open very good. you got to kind of do this, that is just about it. >> heather: then there is my way. >> i sling my first leg up and put it on the seat. i put it right there and lean all the way forward. but come race time, pretty good just doesn't cut it. especially when you are reaching speeds up to speeds of 195 miles

an hour. >> it does take a lot of skill. >> it's not just the driver. it's the team that can put him in front from the tires to everything else to the team that is in place. that begins with the crew chief. matt, what is the main thing you have to concentrated on last weekend. >> getting to the shop and getting to the racetrack, it is huge. >> and this huge truck is how they do it with my buddy rider behind the wheel. >> everything on make this race perform is on this truck somewhere, car parts, radio equipment. >> and washer in here. >> but biffle's crew is just isn't on the ground. they are also on the sky. >> they tell me what is going on with cars. >> there is greg biffle on the

left. >> and come race time, his spotter played a key role getting him through the seven car pile-up in the 15th lap and eventually helping him cross the finish line in second place. >> heather: that was seriously fun. i loved it. >> kelly: bringing sexy back. >> and ridey, tidy and. >> kelly: manicured hands. >> and five inch heels. >> its symphony of speed. >> heather: very nice. thanks to all the guys. >> kelly: serious concerns coming up next. we're talking about serious concerns about the country's most contaminated nuclear site going on. the new discovery that have federal and stated officials scrambling. what it could mean for millions of people. >> heather: new warning from the

nation's largest retailer. what would mean about walmart. >> and oscar pistorius out on bail as he awaits a high profile murder trial. why that may not mean much under south africa's legal system. >> as a family we know oscar's version of what happened that tragic night. and we know that is the truth and that will prevail in the coming courted indication. hi. hi. i'm here to pick up some cacti. it should be under stephens. the verizon share everything plan for small business. get a shareable pool of data... got enough joshua trees? ... on up to 25 devices. so you can spend less time... yea, the golden barrels... managing wireless costs and technology and more time driving your business potential. looks like we're going to need to order more agaves...

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>>. >> heather: welcome back. bottom of the hour, time for the top of the news. some serious new concerns of the

nation's most contaminated nuclear site. federal and state officials say six under ground storage tanks are leaking at the hanford nuclear reservation in washington state but pose no immediate risk to public safety or the environment. >> kelly: police in las vegas stepping up the search for the gunman responsible for the shooting that killed three people on thursday and triggered a fiery crash and explosion on the vegas strip. >> heather: obama administration asking the supreme court to take a stand on gay marriage by void ago key provision of the defense of marriage act. >> kelly: we certainly have heard a lot of about heroic efforts to take out osama bin laden thanks to movies like zero dark 30 but less attention has been paid to a doctor that made a big role to find him. the doctor is now serving a 33

year sentence in pakistan for his efforts to help our country. now, california businessman is making sure hollywood doesn't forget him. dominic is live in los angeles with the details about this story. good to see you. >> reporter: good to see you. we hear and see hollywood celebrities taking up different causes and on the biggest night, one california couple are hoping the stars will help with dire situation near and dear to their hearts. a pakistani doctor recruited by the c.i.a. to enter osama bin laden's,000. ever since then he has been impression and. had he made a full page ad to bring his plight to the world's attention in hopes of getting him freed.

>> its cry to get anybody who gets a moment in the limelight to walk out there and when the cameras in front of them or the microphone is in front of them on the red carpet, make that plea to get america behind freeing the doctor. >> who have ever heard of him before george clooney started mentioning it at events. it's calling on a whole new larger voice to get the hard hitting news out there to the mainstream. >> reporter: last night a pre-on oscar party. they handed out blue awareness ribbons. films like django listened to their pleas. this is one of the ribbons. if you are interested in supporting the cause and getting one go to their website. when asked the story of bin

laden's capture to the big screen, they have yet to respond. >> kelly: is that interesting. we'll see what happens tomorrow night. thank you. >> heather: oscar pistorius is a free man as he awaits trial in the shooting death of his girlfriend. when the case goes to trial a judge will decide his faith not a jury. there are no jury trials for criminal cases in south africa. how will this impact the case. dan is a criminal defense attorney and prosecutor and joins us with more insight. thank you for joining us. judge versus jury, back in 1969 south africa they did away with jury trials when they were under apartheid. will this benefit pistorius? >> it will be interesting to see. generally speaking the thing in the law you much rather as a defense lawyer have a jury.

so generally speaking you want 12 people to make a decision and not a judge. this judge will have probably two advisors who will work with him to make a decision but ultimately that one individual judge to make the teirn decision in the high court. i think all in all that is going to play against mr. pistorius and his counsel. >> heather: why do you think that is case? >> judges tend to look at the evidence technically and in this case there will be issues evidence gathering and all those things. at the end of the day you have a fairly straightforward case with very good evidence for the prosecution. it's way too early to tell. we'll have to see what happens. mr. pistorius was granted bail, but ultimately i think this judge may be able to sift through some of the issues with the defense and put those aside

and look at the bottom line. at the end of the day, mr. pistorius admits that he shot the victim and at the same time, four times through a door, looks like rage and so the defense is really going to have to step up its hand. >> heather: why was he released on bail? he was release and the imagine straight, the chief magistrate said exceptional circumstances in releasing him? >> very plainly, she disabled. it would probably be difficult for him to simply go to an airport unnoticed. at the same time he is very famous and recognizable. there are those reasons. at the same time you could argue he does have access to money. he has access to friends overseas. the judge could have gone other either way. sometimes if the judge grants bail he may be pushing toward some type of settlement between the two sides with the idea that maybe they can get together

before the trial and settle settle it. this prosecutor seems intent on pushing first-degree murder in this case which means he would serve life in prison. and this prosecutor seems to want to do that. >> heather: they talked about premeditation? >> it's shown specifically if you look at the bathroom played out, there is distance between bedroom and bathroom. on top of that you have a four shots through the door. then there is evidence of blunt force trauma to the head. now put all those things together, when did the blunt force trauma come in? how do you get past the four shots through the door. to me that is the big thing. boom, boom, boom, boom. that is lot of shooting, there is time to have premeditation. >> heather: did she scream out? >> why didn't he call out. premeditation could be like that. >> heather: we have to ask about a chief investigator that has been taken off the case.

how will that affect the outcome if at all? >> it's fascinating because you have the o.j. case and you had the same issue there with the problem and investigator. i think they had the same issue with the feet, foot covers contaminating everything. that is where they will have to try to support their client's story. but the prosecution has a simple case in this situation, four shots through the door, no warning. bottom line you have a beautiful young lady dead. >> heather: 29 years old. the trial is set for june 4th. appreciate your insight. >> kelly: a new warning from a big box retailer, wal-mart sales slipping. what it means for your wallet. >> heather: and new threat to national security. they detail the dangers of

hacking. what is behind it and what is being done to try to stop them. [ female announcer ] pillsbury crescents are awesome. but when i cook up some beef, ketchup, relish and cheese, cover it with crescent dough and pow! cheeseburger crescent casserole. double awesome. pillsbury crescents. let the making begin. more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that?

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>>. >> kelly: welcome you back. nation's largest retailer warning about weak earnings, leaked emails reveal a panic about the worst sales start in seven years for the month of february. so, is this a reflection of bad economic times for the u.s. consumer? let's bring in l. captain. it's good to have you with us. walmart with these emails could be its own worst enemy? >> i think so. wal-mart has generated their own worst publicity. where is the customer and this is a disaster.

this the seem to be the source of their own panic. it's also generated bad p.r. and pursuing felony charges against employees that took some cookies. a lot of people feel that is an extreme measure to go. >> kelly: walmart is usually on top of their game. for the american consumer what does it speak of buying a big retailer and we're losing sales and we're not doing too good. should it cause panic. >> there a walmart specific issue and not the u.s. as a whole. wal-mart has done a good job of marketing, people bring this in their irs checks, tax refund and cash it and spend it in the stores. because those refunds are going out more slowly because of the changes in the tax code, they were able to do about three billion in sales from the refund

checks last year and earned half that this year. it doesn't leave us cause for concern for the u.s. economy as a whole. to say that wal-mart is an example of a larger problem is really not accurate. >> kelly: a movie for them brilliant movie that tapped into peoples income tax returns. what about today. the average american consumer, how are we doing in light of the payroll tax. is our economy still good? >> we're seeing discretionary spending contracting because of that. payroll tax is up. average american family that brings home $40,000 a year is going to see $800 less in discretionary spending. we're seeing gas prices creep up. >> kelly: 50 cents in a month, what does that mean? >> on the other hand we're seeing some bright spots. the stock market is up over 6% year to dated.

we're seeing housing recover. we're seeing u.s. manufacturing pick up. so we're seeing a lot of bright spots. some economists have said that when times are tough for walmart it's a positive sign for the rest of economy. >> kelly: why is that? >> because they really attract the value customer. they are known for cheap products, but not necessarily as operational goods. >> kelly: so you are optimistic about our future in terms of our economy that we are improving and not going backwards? >> there is a lot of signs out there in terms of the improvement in housing and really healthy balance sheets in companies earnings have been very positive. three-quarters of the s&p 500 companies are rotted earnings and we've been pleased. the market has responded to. that overall there is a lot of reason to feel very optimistic. >> kelly: that is refreshing

because the talk about the sequester and fiscal cliff talks we had, it's good to hear something refreshing and encouraging. elle, thanks for joining us. >> heather: coming up a massive hacking assault leads back to china's military accused of stealing vital information. are these hackers who work in secrecy our next national security threat? we'll take a look. [ phil ] when you have joint pain and stiffness... accomplishing even little things can become major victories. i'm phil mickelson, pro golfer. when i was diagnosed with psoriatic arthritis, my rheumatologist prescribed enbrel for my pain and stiffness, and to help stop joint damage. [ male announcer ] enbrel may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, nervous system and blood disorders, and allergic reactions have occurred. before starting enbrel, your doctor should test you for tuberculosis

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>>. >> heather: new report finds that economic cyber espionage is on the rise pointing the finger as china as the biggest culprit. beijing says the study is groundless but a cyber firm says it has tracked the source of several attacks including against the u.s. government to a single china government building outside shanghai housing a secret military unit. so with both private and public institutions allegedly under cyber assault are chinese hackers are newest national security threat? joining me is christian whitten a senior advisor and principal at d.c. principal advisory.

>> great to be here. >> heather: how big is the threat to national security and does it amount to electrical weapons of mass destruction? >> it's a big threat. it's not a new threat. china is updating for the 21st century things that u.s. adversaries have always done basically sabotage. adversaries try to steal our secrets but also trade and economic ones. there is the sabotage parted. basically what china is preparing to do is inflict a 21 century pearl harbor on us at a time of their choosing. problem with the report of the white house it's a bit of an exercise in stating the obvious and fine washington tradition of covering one's posterior without recommending a course of action. >> heather: talks about the

report coming out cyber security firm. it's focused on state sponsored robbing of data. but it's about 76 pages long and it mentions in passing penetration of american energy structures, specifically our aging electrical grid. >> that's right. what that really is, it's true the chinese would most like to target in a sabotage attack u.s. critical infrastructure. what the worse-case scenario. the lights could go out and 911 calls would not get answered and banks would close, atms wouldn't work and critical services, first responders wouldn't know where to go. you couldn't lift gasoline out of tanks at pumps. things like that. so really potentially

devastating attack if it could work. we have seen the potential of this in iran where allied efforts to set back nuclear program have been quite effective. this is real threat. the question is how we are going to address it. will it be purely defensive to harden networks here in the u.s. or to make it known like the chinese army that there is a consequence to doing this. >> heather: you mentioned the white house not really saying what they are going to do. just quickly as we wrap up, what do you think they should do? >> i would go on the offensive. problem with the state of the union remarks and executive order it doesn't mentioned the chinese. instead it looks like an exercise in giving more power to the department of homeland security, not the energy department but the bureaucrats. we need cyber command to be in charge of this. we need a code of conduct where

where the chinese realize if they steal our secrets and probe us for a possible attack we'll do the same. we need the federal government to stop the chinese to acquire companies that have sensitive technology. >> heather: call a spade a spade. if china is the one doing it. do something about it. we appreciate you joining us. >> thank you. >> kelly: good to have his insights. that will do it for us. cavuto on business starts next. >> heather: we will see you back here tomorrow 4:00 to 6:00 and be sure to join us. look what mommy is having. mommy's having a french fry. yes she is, yes she is. [ bop ] [ male announcer ] could've had a v8. 100% vegetable juice, with three of your daily vegetable servings in every little bottle. [ slap! ]

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